Hainan island eyes duty free shop sales of $15.8 billion in important year

By Luke Barras-hill |

Big developments are on the horizon in Hainan’s capital of Haikou.

Hainan island is aiming to net total offshore duty free shop sales of RMB100 billion/US$15.8 billion in 2022, it has emerged.

The figure, corroborated by a well-placed TRBusiness source, was reported by China’s state news agency Xinhua after being disclosed at the Hainan Provincial People’s Congress.

Duty free shops in the province racked up RMB60.2 billion/$9.5 billion in 2021 ­– an 84% leap year-on-year.

The RMB100 billion figure comes as China prepares for its forthcoming Lunar New Year holiday season beginning 1 February, with tightened restrictions due to the Omicron variant threatening travel plans.

EIGHTY-ONE MILLION TOURISTS

Citing a Hainan Daily report drawing on official data, government agency Hainan Provincial Bureau of International Economic Development (IEDB) said last week that 81 million tourists visited the island in 2021 – a 25.5% rise year-on-year.

Phase two of the CNSC Sanya International Duty Free Plaza spanning 40,000sq m unveiled in October.

Hainan’s capital Haikou is expected to welcome China Duty Free Group’s Haikou International Duty Free City shopping complex this year.

Quoting an official from China Tourism Group Duty Free Corporation, Xinhua adds that duty free shops at Sanya Phoenix International Airport and Haikou Meilan International Airport will be enhanced.

In the latest edition within the series of ‘Monthly Hainan Insights’ – an exclusive partnership between m1nd-set and TRBusiness – 92% of recent travellers to the offshore duty free haven indicated that they have already, or expect to take advantage of new rules permitting online post-travel duty free purchases.

Currently, there are 10 duty free stores operating on Hainan island.

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